Company News: Burger King earnings up 82 percent

Burger King Holdings Inc., the world’s second-largest burger chain, on Wednesday said its first-quarter earnings jumped 82 percent, due to North American growth driven by sales of Value Menu items and the Stacker sandwich and new restaurant openings. Its shares climbed more than 8 percent.

For the quarter ended Sept. 30, its profit totaled $40 million, or 30 cents per share, up from $22 million, or 19 cents per share, a year ago. Excluding costs related to management fees, franchise system distress and the tax effects of unusual items, net income was 26 cents per share in the latest period.

The Miami-based company’s revenue rose 8 percent to $546 million from $508 million last year.

Analysts polled by Thomson Financial expected a profit of 26 cents per share on revenue of $538.1 million.

Burger King shares rose $1.12, or 6.7 percent, to close at $17.90 in trading on the New York Stock Exchange.

Same-store sales, or sales in stores open at least one year, a widely used industry gauge of performance, grew 2.6 percent in North America and 2.4 percent worldwide.

“MasterCard Inc., owner of the nation’s second-largest credit card brand, said Wednesday its third-quarter profit climbed 82 percent, reflecting increased revenue and a higher number of purchases worldwide. Its shares climbed nearly 15 percent in Wednesday trading.

It was its first full quarter as a publicly traded company. MasterCard sold stock to the public for the first time in May. Larger rival Visa USA has since announced that it too will go public.

Purchase, N.Y.-based MasterCard said it earned $193 million, or $1.42 per share, for the three months ended Sept. 30 versus $106.1 million, or the equivalent of 79 cents a share, a year earlier when MasterCard was a private entity owned by the nation’s largest banks.

Excluding special items from the third quarter last year, Chief Financial Officer Chris McWilton said net income was up by 38.8 percent. Those items included costs from settling litigation and a cash-based executive compensation plan.

“Cigna Corp. reported a 15 percent increase in third-quarter net income, buoyed by a strong showing in its health insurance business as membership rolls increased and the company better managed its medical costs.

Shares of the Philadelphia-based company rose $1.99 to close at $118.97 in trading on the New York Stock Exchange.

In the quarter, net income rose to $298 million, or $2.75 per share.